Lemonade Homeowners Insurance Review in 2023
For tech-savvy homeowners who want a portion of their premium to go to charity, Lemonade house insurance could be a good fit.
Lemonade operates differently from other firms when it comes to homeowner’s insurance. You will speak with Maya, a chatbot, rather than an agent, to obtain a policy. You can submit information and video through the company’s app to make a claim, and you might receive a payout in just a few seconds.
The company’s business strategy deviates from that of the sector as a whole. Each premium is subject to a fixed charge that the firm deducts before paying claims and other expenditures. Any surplus is donated to charities chosen by policyholders, totaling more than $1.8 million in gifts in 2022.
Everyone may not enjoy lemonade. Its policies aren’t offered in all states, and despite its small size, it receives more customer complaints than many other home insurers. Lemonade is a company worth taking into consideration for homeowners who appreciate quick service and the opportunity to donate their insurance money to deserving charities.
How we evaluate home insurance providers
Our star ratings are based on data from the National Association of Insurance Commissioners on consumer complaints, financial strength ratings from AM Best, coverage and discounts offered, and general customer satisfaction. See our standards for rating homeowners’ insurance providers.
For each insurer, we gather a dozen data points from its websites, company representatives, public filings, information from state regulators, and third-party analyses. To assign a star rating, these data points are then contrasted with one another and with NerdWallet’s criteria for respectable insurance providers.
Our editorial team regularly gathers data and checks it for accuracy and consistency. On a scale of one to five stars, final star ratings are given, with one star denoting “poor” and five stars denoting “excellent.”
Our homes insurance evaluations are written and edited by insurance experts whose work has appeared in publications including The Associated Press, The Washington Post, The New York Times, the Chicago-Sun Times, U.S. News & World Report, and the Society for Advancing Business Editing and Writing. Every author and editor adheres to the stringent standards of editorial integrity set out by NerdWallet.
Ratings of consumer complaints are based on complaints to state regulators in relation to the size of a company. In 2019–2021, NerdWallet investigated the complaints that state insurance regulators received and provided a report to the National Association of Insurance Commissioners.
Every year, the NAIC creates a complaint index for each subsidiary, comparing the proportion of total complaints to that subsidiary’s size, or the proportion of total premiums in the industry, in order to evaluate how insurers stack up against one another.
created a comparable index for each insurer over the course of three years, weighted by market shares of each subsidiary to assess a company’s history of complaints. Auto, home (including renters’ and condo) and life insurance ratios are each calculated separately.
star rating for lemonade home insurance
For overall effectiveness, Lemonade homeowners insurance received a rating of 4 out of 5. Our editorial staff determines NerdWallet’s ratings. The ease of filing a claim, website transparency, the company’s financial stability, complaints data from the National Association of Insurance Commissioners, and other factors are all considered in the scoring system for homeowners insurance.
Lemonade homeowners insurance
Although there are many add-ons available to tailor your homeowners policy, the following coverage categories are often included as standard:
Personal property is covered by Lemonade homeowners insurance on a “replacement cost” basis: The business will compensate you adequately if your belongings are damaged or stolen. You might be able to add the following kinds of coverage to a typical Lemonade policy, depending on where you live:
According to statistics from the National Association of Insurance Commissioners spanning three years, Lemonade received more home insurance complaints to state regulators than was typical for its size. (NAIC home insurance complaints also cover complaints about renters’, condo, and mobile home insurance.)
Website: Lemonade has a straightforward, user-friendly website with a comprehensive FAQ section that provides information in plain English. From the homepage, you can quickly request a quote.
App: You may access policy details, change your coverage, submit claims, obtain quotations, and purchase an insurance using the highly regarded Lemonade app.
Claims: Lemonade wants you to use their app, but you may also call in at 844-733-8666. You’ll chat with a chatbot on the app and upload a video of yourself narrating the incident. Depending on the situation, Lemonade could settle your claim right away. Direct bank account deposits are made for payouts.
Where Lemonade differs
filing of claims. According to the corporation, 30% of claims are processed instantly thanks to artificial intelligence. Humans are able to handle claims that are more complex than AI.
give-back initiative. Through this program, you can designate a charity organization to receive a portion of your insurance premium. Since 2017, Lemonade has donated more than $6 million.
Hippo vs. Lemonade: Home insurance
Lemonade and Hippo are two more recent businesses that provide insurance to customers directly rather than through intermediaries. Hippo only insures homes and condos, whereas Lemonade also provides renters, pet, life, and auto insurance. This is one of the biggest differences between the two companies.
Hippo and Lemonade provide comparable homeowners insurance coverage options, though some are more expensive with each company. For instance, Lemonade covers the replacement cost of your possessions in every policy, whereas Hippo only offers this in its more expensive plans.
All of Hippo’s policies do, however, include extended replacement cost, which increases your dwelling coverage limit by 25% to 50% in the event that it would be more expensive to rebuild your house than anticipated.
With Lemonade, this coverage is more expensive. Hippo provides free smart home gadgets like water sensors, smoke detectors, and security cameras to policyholders in many states.
Home insurance from Geico versus Lemonade
Lemonade offers its own policies, whereas Geico homeowners policies are obtained from third parties, and this is the main distinction between the two companies’ house insurance offerings.
For house insurance, Geico partners with organizations like Travelers, Liberty Mutual, and Homesite. As a result, if you need to make a claim, you must speak with the other organization directly. Meanwhile, the Lemonade app allows you to complete a quick, simple claim process.
Geico, which offers vehicle insurance across the country, makes it simpler to combine home and auto insurance. Only Illinois, Ohio, and Tennessee are states where Lemonade offers auto insurance.
Do you need Lemonade house insurance?
With a focus on simplicity and convenience, Lemonade’s digital-first experience gives homeowners access to nearly all aspects of their policy through the website or mobile app. You’ll probably fit Lemonade well if that appeals to you.
However, you’ll be better off with a different insurer if you’d rather go over coverage options with a local agent and develop a relationship with them.
What additional insurance coverage does Lemonade provide?
Additionally, Lemonade offers life, vehicle, pet, renters, and condo/co-op insurance. See our Lemonade renters insurance review for more information.
Does Lemonade provide coverage for items kept in storage?
Yes, but where you reside will determine how much. Your possessions in a storage locker are covered up to 10% of your personal property limit in New York, California, and Connecticut. You could only have $1,000 in coverage for theft in other places.
Does Lemonade home insurance have restrictions on dog breeds?
According to where you reside, yes. Pit bulls, Staffordshire terriers, Doberman pinschers, Rottweilers, German shepherds, Chows, Great Danes, Presa Canarios, Akitas, Alaskan malamutes, Siberian huskies, and wolf hybrids are among the breeds for which Lemonade generally refuses to provide liability coverage.
Breed limitations do not apply if you reside in Connecticut, Georgia, Illinois, Michigan, New Jersey, New York, Pennsylvania, or Virginia. Instead, Lemonade will only disclaim liability for dog bites if your pet has a history of doing so.
Ratings of the customer experience assess how simple it is to communicate with an insurance provider, including requesting quotations, knowing about available alternatives for coverage, and submitting and following up on claims.
Insurance companies that offer specific types of coverage that other businesses charge extra may receive bonus points. Examples include replacement cost coverage for personal items or extended or guaranteed replacement for your home.
The ability of an insurer to pay future claims is indicated by financial strength ratings, which are based on evaluations from unbiased organizations like AM Best, Moody’s, and Fitch.
The top house insurance companies make it simple to comprehend and buy a coverage. To help customers customize their purchases, they provide a wide variety of discounts and coverage choices. They have a solid financial foundation and can maintain a positive relationship with their clients.
Depending on the breed of your dog, some insurance will cover both your house and any dog attacks. Other insurers won’t. These breed limitations may make it more difficult to purchase homeowners insurance, particularly if you have a dog that appears on lists of hazardous breeds.
Despite the fact that many canines of mixed parentage might be considered “pit bulls,” pit bulls frequently feature on these lists. Doberman pinschers, Rottweilers, Siberian huskies, German shepherds, and wolf hybrids are some more breeds that are frequently prohibited by house insurance carriers.